A bankruptcy court has approved DFS site FantasyDraft’s plan to bail out failed DFS site Fantasy Aces, officials for FantasyDraft told Legal Sports Report.
FantasyDraft has agreed to pay Fantasy Aces players up to $1,000 each to cover their Fantasy Aces balances. That should cover all but a small percentage of players with accounts over $1,000.
“We felt that helping the Fantasy Aces players was the right thing to do and fortunately we were in a position to do so,” FantasyDraft CEO Steve Krombolz told Legal Sports Report. “It is a big commitment to invest what is a significant amount of time and money but at the end of the day we felt it was the right decision for both the players and FantasyDraft.”
Fantasy Aces shut down in January, and filed for Chapter 7 bankruptcy protection. Filings in that case showed that Aces owed about $1.3 million to “various user accounts.” But the company only had about $3,000 in cash in accounts earmarked for players, according to those filings.
Before the bankruptcy, FantasyDraft had been in talks to acquire Aces, but then pulled out of the deal.
Fantasy Aces players will be able to access their accounts and play at FantasyDraft.
“We custom built code allowing Fantasy Aces players, both new to FantasyDraft and existing users, to claim their funds in a seamless automated process,” Krombolz said. “Once they have confirmed their identity the funds will be available for play immediately.”
